Sell or Buy a Tech Company in Illinois

Tech Business Overview

Illinois is home to a thriving tech ecosystem, with Chicago ranking among the top tech hubs in the nation. From SaaS companies to IT services, Illinois tech businesses serve clients locally and globally.

Tech businesses include software companies, SaaS platforms, IT service providers, digital agencies, and technology consultancies. These businesses require attention to intellectual property, recurring revenue metrics, and technology stack considerations.

Tech Business Valuation

Business Type	Multiple Range	Basis
SaaS Companies	3.0x - 8.0x	ARR (Annual Recurring Revenue)
IT Services	3.0x - 5.0x	SDE or EBITDA
Digital Agencies	2.5x - 4.0x	SDE or EBITDA
Software Products	4.0x - 10.0x	EBITDA or Revenue

Key Valuation Factors

Recurring revenue: MRR/ARR, churn rates, expansion revenue
Growth rate: Historical and projected growth
Customer metrics: CAC, LTV, retention rates
Technology: Tech stack, scalability, technical debt
IP protection: Patents, trademarks, proprietary code

Selling a Tech Company in Illinois

Key Selling Considerations

IP documentation: Patents, copyrights, trade secrets
Code ownership: Clean IP assignment from developers
Customer contracts: Recurring revenue documentation
Team transition: Key developer retention planning
Technology audit: Code quality and documentation

Regulatory Compliance for Sellers

IP Protection: Patent filings, trademark registrations
Data Privacy: GDPR, CCPA, and data handling compliance
Software Licensing: Third-party license compliance
Customer Agreements: Assignment and transfer provisions

Complete Selling Guide →

Buying a Tech Company in Illinois

Key Buying Considerations

Technology assessment: Code quality, scalability, security
IP verification: Ownership and freedom to operate
Customer analysis: Churn, concentration, contract terms
Team evaluation: Key personnel and retention
Growth potential: Market opportunity and competitive position

Due Diligence Checklist

Financial review: MRR/ARR trends, unit economics, cohort analysis
Technology audit: Code review, architecture assessment
IP review: Patent search, ownership verification
Customer analysis: Retention, NPS, contract review
Security audit: Penetration testing, compliance review

Complete Buying Guide →

Tech Business Types

☁️ SaaS

Software as a Service platforms.

🛒 E-commerce

Online retail and marketplaces.

💻 IT Services

Managed services and consulting.

📱 Mobile Apps

Mobile application businesses.

🎨 Digital Agencies

Web development and marketing.

🔒 Cybersecurity

Security products and services.

Tech Business Resources

Industry Organizations

Regulatory Resources

Frequently Asked Questions

SaaS companies are typically valued at 3-8x ARR (Annual Recurring Revenue). Key factors include growth rate, churn, gross margins, and customer acquisition costs. High-growth SaaS with low churn can command 10x+ ARR multiples.

Key IP considerations include code ownership (ensure all developers have signed IP assignment agreements), patent protection for unique technology, trademark registration for brand assets, and trade secret protection for proprietary algorithms or processes.